A lot of the coverage on Amazon’s agreement to purchase MGM is focused on MGM’s past. But this is not simply a purchase of a studio or even the purchase of a huge library of iconic titles. The quiet part of this story is that Amazon also bought some of its competition. MGM owns EPIX. The studio features its movies exclusively on the streaming and TV service after they leave the theater. EPIX has a presence as both a premium TV channel as well as a stand-alone streaming service.
This means that now Amazon owns two streaming services and a TV Channel. Sure, people think that cable is a thing of the past. But they are quite wrong. While cord-cutting is getting ever more popular there are still millions of traditional TV viewers.
How could Amazon use EPIX in the future?
For one it allows Amazon to pull from a totally new income source. The company has always operated as a retail store that also sold access to media via its shipping service. That has always been the real goal of Amazon Prime Video. But now it will be in the business of actually negotiating carriage deals for a TV channel. It’s a very different spot for Amazon to be in.
You could see an Amazon TV channel
Amazon could leave the branding and feel of EPIX alone and just roll with it. But Amazon could also flex and change the name and branding to reflect its ownership. EPIX could become the Amazon TV Channel. Would that be beneficial? Maybe, maybe not. It might just confuse people who would associate it too much with its streaming service. Disney did not change the name of Hulu once it got full control of the service.
You could see bundling
On the other hand, Amazon could follow Disney’s example and allow Amazon Prime Customers to bundle EPIX with their streaming package at a reduced rate.
Maybe EPIX will just be absorbed
EPIX may be just another nugget for Amazon to put out there for potential Prime customers. It could continue its traditional TV presence while also offering all Amazon Prime customers access to the streaming side of the service as well. It’s no skin off Amazon’s back if the general public doesn’t understand that they don’t have to pay more for the product to see it. But if it can also sell new customers on the idea of getting access to a premium network just for signing up to be tempted to order everything the buy from them why not? Again, for all of the attention Amazon gets from its streaming service, its real focus is getting people to buy tape, socks, Tide, speakers and everything else from its retail arm and have it shipped for free.
